What is conditional expectation?

Updated May 17, 2026

Short answer

Conditional expectation is the expected value of a variable given another variable.

Deep explanation

E[X|Y] represents the average of X when Y is fixed. It is a function of Y and forms the basis of regression and predictive modeling in probability theory.

Real-world example

Expected salary given years of experience.

Common mistakes

  • Treating conditional expectation as a constant instead of a function.

Follow-up questions

  • Is conditional expectation always linear?
  • Where is it used?

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